The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-01-07
GOV. BopwELL's INAUGURAL.
A Concise, Direct and Practical Docu-
ment.
A Reduction Of the State Tax Recon-
mended.
No More Law Needed to Suppress
RumseIllng-
Abolition of imprisonment for Debt
and Trustee Process Urged.
Legislation Against Child Labor and
Ten Hour Law Needed.

Gentlemen Of the Senate and House of Rep.
resentdtiUes:
- In accordance with the duty enjoined upon
| the Governor by the Constitution. / now
submit TO you information of the condition
| OF the State, and recommend to your cOnsid.
Grafton such measures as l judge TO be expe-
dent at this time.
STATE TAX.
My first recommendation is that the State
tax be reduced by the sum Of S235, ,945. .33,
which is 26s per cent. of the total amount now
levied. The condition Of the State finances,
according to the annual report Of the Treas,
urer, Will justify this important step. The
nominal amount of the bonded debt Of the
State Is .S5,157,00O, all of which is due and
payable in the year 1SS9-$2, 10000 in June,
ana S2,S21,OO0 In October. In Offset to the
total amount Of the debt. there is in the
treasury a sinking-fund of S2 110, ,S90.57. This
Iund Is composed of our own State Bonds to
the amount of S1,161,5O0; United States
Bonds, SSS4.3OO; New Hampshire State
Bonds, $4,000; and Massachusetts State
Bonds, $4,000. The premium on the three
last named securities amounts to-day, accord
ing 10 the statement of the Treasurer, to
S247, ,26OO0 thus making the aggregate
value OF the sinking fund 50, 357, ,650.57. The
premium will probably be higher rather than
lower during the current year. Deducting
the slnking-fund at its full and actual value,
the aggregate debt Of the State which re-
mains to be provided for is S2,799, ,349.43.
Inc slnklng-fund operations, under the
Act 81 1865, should be brought to close,
now That the State is called upon to provide
1or the final liquidation of the bonds in aid OF
whose payment the fund was originally es-
taDnsned. VI the securities in the fund, |
recommend that the bonds OF our own State
pc cancelled and destroyed by the Treasurer
In the presence of Joint committee of the
TWO branches Of the Legislature and com
mlttee OF the Executive Council. | recon-
mend further that the avails of the United
States, Massachusetts and New Hampshire
ponds be devoted directly to the liquidation
Of tne state debt, according to the manner
which is indicated below.
REFUNDINe OF THE DEBT.
To provide for the State debt still remain
ing 1 recommend that Refunding Bill be
enacted, giving the Treasurer the right 10
sell, after due advertisement, TO the highest
bidder, bonds of the. State Of Maine to an
amount not exceeding two million eight hun
dred thousand dollars, the bonds to run for
tnirty years at three per cent, interest to be
pald semi-annually at the Treasurer's office
and in the city of Boston. also recommend
tnat Tor the ultimate redemption of these
new bonds sinking-fund be established
amounting 10 one per cent. annually of the
wnole amount, said sinking-fund to be In
vested in State bonds of the New England
State and city bonds of any New England
city OF twenty thousand inhabitants whose
total permissible debt is not in excess of five
per cent. OF its valuation. l think sinking
fund should not be SO, closely restricted In
me sne iine OF investments astQ practically de-
1eat large share Of the profit~tn be derived
from Its establishment. That has been, to
some extent the defect Of the sinkins fund
Of 1868, as pointed out by the Treasurer-ia
MS annual report. / recommend only a
small sinklng-fund fo- the new bonds,-one
VIII rapidly extinguish the debt
recommend further that provision be
inserted I'D the Refunding Act, authorizing
the Treasurer to exchange the new bond for
the Old at any time after the passage of the
Act, and further, that the Treasurer be
given the right to purchase, TO the extent OF
tne net amount remaining in the sinking
fund, all Maine bonds that may be offered in
advance Of their maturity, provided that the
terms OF exchange and purchase shall be OBJ
tlously advantageous to the State. These
authorizations to the Treasurer will proba-
Diy result in considerable saving TO the
treasury. The exchange Of bonds and the
purchase OF bonds from the resources in the
sslnklng-fund should be conducted with the
~ lh,IloWledge ana the approval, in writing, of
be cancelled and held as vouchers for the ex-
animation OF the next Legislature.
Inc suspension Of the interest on the State
ponds now held in the sinking-fund, togeth-
er with the suspension of the $4,000 annual
contribution to that fund and the tsrmina-
tion of the $4,000 for direct payment Of
state debt, form the groundwork for the re-
auction OF the State tax, as | have recon-
mended. With the successful refunding of
the state debt and the provision for new
mended, afurther reduction of the State tax
may be confidently expected by the next
The State tax to be levied this year. after
the reduction referred to, will amount to two
ana tnree-quarter mills on the dollar of State
valuation, or twenty-seven and one-half
cents on each one hundred dollars. But it
must be noted that one mill of the two and
and three-quarters is not the ordinary State
tax, but ls especially levied for the School
Innd: Its Denencent operation is such that
the rich towns OF the State are held in part
to educate the children Of the towns not so
well of In worldly goods. This tax is levied
according TO property, and divided among
the towns according to the number Of schoi-
ars, SO that the rich towns get back great
deal less tnan they pay, and the towns of
less wealth get back great deal more than
they pay. This tax was established by the
Legislature of 1872 and has worked well.
Being levied directly by the State it is often
confused with the State tax proper, which
ls levied for the support of the State govern
ment In all its departments. Deducting this
mill tax for schools, the State tax proper for
the ensuing year will be only one mill and
three-quarters, which is the lowest rate of
state tax for support of the government that
mas been levied within the last fifty years,
with the exception of the tax levied respec-
lively by the Legislatures OF 1916, 1860 and
1861. The reduction now recommended re-
lates to the State tax proper, and amounts to
nearly thirty-seyen per cent. of the whole
amount levied.
These facts are encouraging to the tax
payers OF the State and are, in TIE highest
degree, creditable to to the care and economy
with which the State finances have been adj
mlnlStered In the past. In 1868 the State
debt debt was SS,loO,OOO, and every dollar, except
S6S9,OOO, was incurred on account of the war
for the suppression of the Rebellion. The
payment OF five million three hundred thous-
and dollars which has been made on the
principal, leaves only two million eight hum
dred thousand dollars of the debt and will
impose tax for interest of only $4,000 per
annum. If anything more were needed to
guarantee the high credit of the State, ii
would be found in the Constitutional pro-
vision which prohibits the incurring of any
obligation in excess OF three hundred thous-
and dollars, except for purposes of war. In
this will always be found a large protection
to our credit, and an invaluable safeguard 10
the taxpayer.
STATE VALUATION.
IL may be stated as maxim that there Is
no expenditure for which the citizen gets so
much In return as for the amount he deyotes
to paying taxes, and yet there is no subject
upon which people are more Justly sensitive
than that the taxes be equal. III all cOmmu-
mites and all the citizens of each community,
paid In equal and proper proportion, there
would be no complaint among the people. The
grievance arises, in large part, from the ine-
quality of taxation, and the inequality arises.
In large part, from the errors in valuation
errors in many cases innocently made. no
doubt, but still working hardship in many
ways.
1t should be made the steady aim of the
Legislative power Of the State to eaualize
the burdens OF government To that end
recommend that earnest inquiry be made in
to the mode of our valuation, with the view
to its Improvement. A Board, composed of
one Commissioner from each county, hasti-
ly summoned at the close of each decade.
with each member naturally endeavoring TO
have his own county valued at as low rate
as possible, would not seem to be the hest
method devisable. And vet that is the char
acter OF our present system. A smaller num-
Der OF Commissioners, say not exceeding
three, at work for a longer period. chosen
not as the representatives of the counties in
which they may reside, but for the whole
State, would be less cumbrous, less expen-
sive and in many ways more efficient The
systems of valuation in force In other New
England States should be carefully exam
ined. Some improved methods In those
States could, have reason to believe. be
Incorporated i'm our own system.
One provision in the Valuation Act [ spe-
cially recommend, viz: that in case of de-
structive fire or any other sudden and dis
a stroue calamity in any cffv nr to,,,,, A.